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real estate

The Wall Street Journal and numerous other media outlets are reporting that the State of the Union address on Tuesday will outline a proposal by the President to effectively increase estate taxes. In the proposal, appreciated assets in an estate would not receive an updated or “stepped up” tax basis on death. Only a small amount of gains, suggested as $200,000 in portfolio assets and $500,000 in a primary residence would be shielded from tax. Although these numbers may seem large, ask many families what their tax-cost basis is in desirable places to live, such as Silicon Valley and other parts of California, and you will see that this proposal would capture many more families with a taxable event on death even without a formal change to the estate tax rules. There are many estate planning strategies that can help with families facing estate tax burdens. Some of the best strategies use Nevada Trusts – the best state for asset protection and tax minimization. Please call Greg Crawford in Reno at 775-297-4684 for more information.